17. If a company pays a cash dividend of $3,000 to shareholders, what account types will be affected and how? a. Assets increase and Liabilities increase b. Liabilities increase and Equity increases c. Assets decrease and Equity decrease 18. What type of trial balance is prepared after the closing entries? a. Regular Trial balance b. Adjusted Trial Balance c. Post-closing Trial Balance 19. Company A pays office rent for the month of October in cash, $5,000. What is the appropriate entry for this transaction at month-end? a. Debit Rent Expense $5,000 and Credit Cash $5,000 b. Credit Rent Expense $5,000 and Debit Cash $5,000 c. Debit Rent Expense $5,000 and Debit Cash $5,000 d. Credit Rent Expense $5,000 and Credit Cash $5,000 20. Company B estimates depreciation on its office equipment to be $500 per month. What is the appropriate entry for this transaction at month-end? a. Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500 b. Credit Depreciation Expense $500 and Credit Accumulated Depreciation $500 c. Credit Depreciation Expense $500 and Debit Accumulated Depreciation $500 d. Debit Depreciation Expense $500 and Debit Accumulated Depreciation $500 21. Company C receives $2,000 in cash from a customer in advance for a service to be performed next month. How would this transaction be appropriately recorded? a. Credit Sales Revenue $2000 and Debit Cash $2000 b. Debit Cash $2000 and Credit Accounts Receivable $2000 c. Credit Unearned Revenue $2000 and Debit Cash $2000 d. Debit Cash $2000 and Debit Service Revenue $2000 22. Which is not a section in the Statement of Cash Flows? a. Cash flows from operating activities b. Cash flows from financing activities c. Cash flows from borrowing activities d. Cash flows from investing activities 23. A separation of operating and non-operating activities of a company exists in: a. Both a multiple-step and single-step income statement b. A multiple-step but not a single-step income statement c. A single-step but not a multiple-step income statement d. Neither single nor multiple-step income statement 24. On which financial statement must Earnings Per Share be disclosed? a. Income Statement b. Balance Sheet c. Cash Flows Statement 3